Problems Confronting British Industrial Distributors

UK industrial distributors are relied on by both producers and suppliers to help counter adverse environmental developments. Channel performance can be improved if there is co‐operation between channel members, and each understands the others' strengths, weaknesses and responsibilities. Industrial distributors are seen as being, on the whole, small, owner‐controlled, rich in product and market knowledge and poor in management expertise. A postal survey considered a number of problems relating to price‐sensitive, difficult customers, markets where there are strong upward pressures on costs, and too many rivals competing on price and possessing market strength. There are problems, also, both internal and external to the firm. The best strategy to cope with many of these lies in utilising the help of other channel members, and a consideration of product differentiation, segmental specialisation and cost leadership. A number of specific remedial actions are also recommended.